What are Instant Payments?

What are Instant Payments?

Information

Title
What are Instant Payments?

Summary
Dwolll supports two systems for Instant Payments, RTP from The Clearing House and FedNow from the Federal Reserve.

Real-Time Payments allow businesses to initiate an account-to-account transfer that will be settled between bank accounts in seconds using the RTP® network. Real-time payments can be initiated at all hours of the day—no matter if that day falls on a holiday or weekend. With Dwolla, these credit transfers are balance-sourced, account-to-account transactions that clear and settle nearly instantaneously.

The FedNow Service, developed by the Federal Reserve, is a new instant payment infrastructure designed to modernize the U.S. payment system. Similar to the RTP® network, it allows financial institutions to facilitate account-to-account transfers that are settled between bank accounts in seconds.

Because RTP and FedNow transactions are intended to be instantaneous and irrevocable, the RTP® network does not have an automated returns process like what you may have experienced in ACH transactions or chargebacks in the credit card networks. If a RTP transaction is sent in error, the sending financial institution has the option to request the funds be returned in certain circumstances, but the receiving financial institution is not obligated to return the funds.

Instant Payments are a premium feature of the Dwolla Platform.

If you’re interested in enabling Instant Payments on your platform, reach out to support@dwolla.com or contact your Customer Excellence Manager.

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